Coal Dependency Surges In Indonesia And The Philippines Despite Untapped Renewable Energy Potential

Indonesia and the Philippines are experiencing a rapid increase in coal dependency, with both countries now surpassing China and Poland in their reliance on coal for electricity generation.

In 2023, Indonesia’s share of electricity generated from coal reached a record high of 61.8%, placing it ahead of Poland, which it surpassed in terms of coal dependency. The Philippines saw an even sharper increase, with coal accounting for 61.9% of its electricity mix, overtaking both China and Indonesia to become the most coal-reliant country in Southeast Asia.

The growing coal dependency in these two countries comes amid a global push towards renewable energy sources. Despite their significant wind and solar potential, Indonesia and the Philippines have yet to fully tap into these resources. In Indonesia, renewable energy growth has been sluggish, with solar and wind generation contributing only 1.2 TWh since 2013. Similarly, the Philippines’ renewable energy sector has made limited progress, with wind and solar accounting for 3.7 TWh of generation in 2023.

The rest of the ASEAN region also saw an increase in coal reliance, with coal’s share of electricity generation rising from 31% in 2022 to 33% in 2023. However, this increase followed two consecutive years of decline and remains below 2020 levels.

Indonesia’s electricity demand rose by 17.1 TWh (5.1%) in 2023, with coal power contributing 11.5 TWh (5.6%) of this increase. Despite a 9% rise in bioenergy generation, clean power generation overall fell by 0.3% in Indonesia.

In the Philippines, coal generation rose by 6.5 TWh (9.7%) in 2023, outpacing the 5.2 TWh (4.6%) increase in electricity demand. Wind and solar generation in the Philippines increased by 0.9 TWh (31%), meeting 17% of the total demand rise.

This reliance on coal contrasts sharply with China and Poland, where strong growth in wind and solar energy is reducing coal’s share in the electricity mix. In 2023, Indonesia became the world’s fifth-largest coal power generator, overtaking South Korea. Meanwhile, the Philippines remains the 17th largest coal market globally.

Despite their growing coal dependency, Indonesia and the Philippines have substantial untapped potential for wind and solar energy. Accelerating the deployment of these renewable energy sources could help both countries meet their growing electricity demand more sustainably and reduce their reliance on coal.